Want to put your Bitcoins someplace safe, but don’t know how to choose a wallet? This guide should help you make a decision! Choose the best bitcoin wallet; the safest one!
Before you begin your crypto journey, every trader and financial advisor will tell you the same thing: “Choose the right Bitcoin wallet.” Although this can seem to be an overreaction and something not even worth considering, it is critical to remain aware and safe before embarking on any financial adventure.
This is where wallets come into play, and deciding between various options can be daunting. The most important thing to remember is to stay safe and protected with your investment and choose a safe bitcoin wallet like Coinbase (Official Website) or or a hardwerr wallet like Ledger Nano S (Official Website).
What are bitcoin wallets?
We have always heard about wallets, which are locations where we store our money, actual money. What about the Bitcoin wallet, on the other hand? It operates on the same premise as storing money, but since Bitcoin is a data rather than a tangible currency, the wallet is slightly different.
The Bitcoin wallet is basically a software program that stores data. The information stored in form of various keys is necessary for you to gain access to your currency. There are several different types of wallets, each with its own degree of protection and quality.
Here are the popular wallets for Bitcoin:
- Online wallet – Coinbase (Official Website);
- Hard wallet – Ledger Nano S (Official Website);
- Paper wallet and others
Do I need a Bitcoin wallet?
The simple answer is that you definitely need a Bitcoin wallet. When users sign up for exchange sites like Binance (Official Website), Bittrex (Official Website), and others, they immediately create a wallet in which all of their cryptocurrency is held. This wallet is known as an online or hot wallet on the actual website. You have easy access to it, but you do not have sole ownership of all the keys used to do so. The wallet is still in the possession of the platform.
Furthermore, there are certain wallets that are deemed better, such as hard wallets, which basically provide users with a physical device where all of the cryptocurrency is kept.
The key term here is safety; when traders amass large sums of money, they want to ensure that it is protected from misuse and theft. This is why it is important to have your currencies on a separate device or wallet that only you have access to.
Best Bitcoin Wallets 2021: the safest
Here are some good examples of safe wallets you can use:
Ledger Nano S
This small and light wallet, Ledger Nano S (Official Website), provides all the security you need to trade, store, and swap cryptocurrencies.
The device , Ledger Nano S (Official Website), is compatible with the app, which allows you to quickly access all of your records, exchange cryptocurrency, and stay safe on your smart devices or PC.
It should come as no surprise that this is one of the most popular wallets on the market. It provides top-tier asset protection, as well as the quality of the same company’s Live App. This way, you can take your wallet with you everywhere you go, easily access and sell your cryptocurrency, and be certain that you will not be a victim of fraud.
All critical data is kept offline and in the security of a specially encrypted chip (Ledger Nano S Wallet Review).
Look no further if you want a dependable wallet that not only provides offline asset security but also a backup of all your records. Trezor wallet (Official Website) is a one-of-a-kind hard wallet that employs cutting-edge technologies to hold your cryptocurrency safe whilst still making it accessible for trading or exchange.
Trezor wallet (Official Website) provides some of the best customer service possible, and they are available to customers 24 hours a day, seven days a week. Furthermore, the interface is incredibly simple to use and ideal for beginners. However, there are few extra options for advanced users as well.
Aside from the wallets that are available as physical USB devices, you can also store all of your money on trading platforms such as Coinbase (Official Website) and others. When new users sign up for the platform, a wallet is created. This is a section of the platform where you can deposit cryptocurrency and sell from.
Though hard wallets are known to be more reliable, wallets on platforms such as Coinbase (Official Website) are also very secure.
There are several levels of encryption, as well as coded protocols and two-way authentication. Remember that you are not the only one who has access to the assets stored in this kind of wallet.
Bitpanda (Official Website) is yet another exchange and trading site that provides cryptocurrency storage. Each user’s wallet on Bitpanda (Official Website) is automatically created. They are in charge of maintaining the properties’ high-quality preservation and usability.
This is a perfect spot for newcomers who are not yet experienced enough for larger platforms but want to check out the latest trading trend. It is still a safe way to keep your currency, though not as safe as certain other types of wallets.
Binance (Official Website) is one of the largest and most successful cryptocurrency exchange platforms. They provide users with a specially protected wallet that is provided for free at the same time the account is created.
This wallet is needed for users to receive, send, and trade cryptocurrencies. Binance (Official Website) has several levels of encryption and two-factor authentication to guarantee the full security of your assets. Furthermore, Binance (Official Website) is one of the few sites that offer insurance in the event of fraud or theft.
Bittrex (Official Website) is the most trusted cryptocurrency exchange and wallet known
for its security; the platform was built with multiple layers of protection.
Bittrex (Official Website) has mobile app for Apple and Android and Bittrex Global Limited is fully licensed to conduct Digital Asset Busines.
Exodus is known as a hot wallet because it stores money on the internet. This wallet is safe, simple to use, and completely free, so it is gaining popularity by the day. Exodus can be used on the go since an application for all smart devices has been created.
They are also collaborating closely with the Tresor wallet (Official Website), which was previously listed, to ensure users have an extra secure place to store their assets while also having easy access to all of the currencies. The Exodus wallet also supports altcoins, which could be very useful for those users who are interested in more than just Bitcoin.
Differences among bitcoin wallets
Online wallets are wallets that can be found on the web, such as wallets offered by various trading and exchange platforms like Coinbase (Official Website), Bittrex (Official Website) or Bitpanda (Official Website).
These wallets are free, easy to use, and safe. Cryptocurrencies are always available, and traders can quickly access and convert any amount. It’s not the safest option but it’s the fastest one for sure.
Many companies are committed to the manufacture of these small USB devices that are very easy to use, incredibly safe, and ideal for keeping your data secure and close at hand.
The number of apps available for storing your cryptocurrency is growing by the day. Because more people embrace the crypto movement, the need for a safe but efficient wallet has grown.
Users often enjoy exchanging and handling currencies from their mobile devices, which is where wallet applications come in.
Paper wallets are regarded as one of the safest methods of holding cryptocurrency over an extended period of time. The keys and passwords for gaining access to the currencies are literally printed on a sheet of paper, which is often laminated and kept secure.
As you can see, there are numerous options for keeping your currencies safe. You can pick one or the other depending on your interests and the number of assets you possess. Wallets available on Coinbase (Official Website) are a perfect choice for people who want to keep their currencies secure while still being able to access and exchange them easily. This wallet is ideal for newcomers, day traders, and anybody who wants quick access to their coins.
Some wallets, on the other hand, are more secure, such as hard wallets or USB devices, where all currencies can be kept offline and in the safety of your pocket. This is best for greater sums of money and people who value protection over the speed of money transfer.
Paper wallets are the safest options, however, the currencies located in this kind of wallet are not accessed easily so it’s better solution for HODL-ing cryptocurrencies.
How to choose the best bitcoin wallet?
The best wallet for storing your cryptocurrencies is determined by a number of factors, including:
- Amount of money;
The most critical takeaway from this article is that you can never be too cautious about your money. With this in mind, when selecting a wallet, always choose the safest options. Any wallet that is linked to your computer or the internet can be easily hacked.
Wallets that are fully offline (Ledger Nano S – Official Website), on the other hand, maybe a perfect option because there is no chance of stealing or fraud.
Furthermore, online wallets, like Coinbase (Official Website), Bittrex (Official Website), are thought to be easier to use, so if you want to keep your cryptocurrency accessible, these wallets are the way to go.
As you can see, there are several things to consider, but security is of the utmost importance.
- Allow two-factor authentication when possible;
- Never share your keys and passwords;
- Keep your personal information to yourself;
- Keep a certain amount of cryptocurrencies on a hard wallet;
- Keep some coins for trading in the online wallet for quick access;